Why everyone’s talking about it — and why waiting might make all the difference.
GE Aerospace, formerly General Electric, has transformed into a focused, premium aerospace player. It’s now a pure-play engine manufacturer for civil and military aviation — with rising revenues, surging margins, and a newfound cash flow credibility after a decade of restructuring.
👉 But here’s the issue: the market is already pricing in perfection.
At $312, the real question is no longer “Is GE a great company?” but “Is it still a good investment today?”
1. Consolidated Financial Performance (FY 2023 – FY 2024 – 2025)
| Key Metric | FY 2023 | FY 2024 | 2025 | Trend |
|---|---|---|---|---|
| Revenue | $35.3B | $38.7B | $43.9B | +24% |
| EBITDA | $5.9B | $7.9B | $9.5B | +61% |
| Net Income | $9.2B | $6.5B | $8.1B | Volatile |
| EPS (Diluted) | $8.35 | $5.98 | $7.50 | Recovery |
| Operating Cash Flow | $5.2B | $4.7B | $7.6B | Strong rebound |
| Free Cash Flow | $4.3B | $3.7B | $6.4B | +75% |
| CapEx | -$862M | -$1.03B | -$1.11B | Moderate rise |
Key Reading:
- Solid acceleration in revenue and EBITDA → riding the aerospace upcycle (Airbus / Boeing + MRO demand).
- FY2024 net income was distorted by one-off items → normalized in TTM 2025.
- FCF explosion in TTM 2025 = a strong signal after years of market skepticism.
2. Margins: A Turnaround Story
| Margin Type | FY 2023 | FY 2024 | 2025 | Analysis |
|---|---|---|---|---|
| Gross Margin | 35.1% | 37.0% | 37.7% | Improving consistently |
| Operating Margin | 13.4% | 17.3% | 18.9% | Strong industrial turnaround |
| Net Margin | 26.0% | 16.9% | 18.3% | Healthy normalization |
Conclusion on Margins:
GE Aerospace has moved from:
❌ A bloated industrial conglomerate
✅ To a focused, margin-driven aerospace powerhouse
Margins now rival those of leading aerospace peers.
3. Cash Flow & Capital Allocation
| Cash Metric | FY 2023 | FY 2024 | 2025 | Strategic Reading |
|---|---|---|---|---|
| Operating Cash Flow | $5.2B | $4.7B | $7.6B | Significant improvement |
| CapEx | -$862M | -$1.03B | -$1.11B | Controlled reinvestment |
| Free Cash Flow (FCF) | $4.3B | $3.7B | $6.4B | Strong & healthy |
| Dividends | -$589M | -$1.01B | -$1.38B | Rising sharply |
| Share Buybacks | -$5.8B | 0 | 0 | Stopped post-split |
| Net Debt | Falling | Lower | Stable | Credible deleveraging |
Strategic View:
- GE has regained credibility on FCF — a key investment trigger.
- Current focus: dividends and financial strength, not buybacks.
- Aerospace cycle is funding the transition, not the reverse.
4. Valuation & Financial Structure (Price: $312)
| Valuation Ratio | Value | Interpretation |
|---|---|---|
| P/E (TTM) | 41.6x | Very high |
| Price / Sales | 7.3x | Stretched |
| Price / FCF | 63x | Excessive |
| FCF Yield | ~1.6% | Low |
| Market Cap | ~$329B | Massive rerating post-spin |
Valuation Takeaway:
The market values GE Aerospace like a top-tier growth stock.
But:
- Growth is cyclical
- CapEx is intensive
- Multiples price in several years of flawless execution
5. Stock Price Evolution Scenarios
| Time Horizon | Target Price | Scenario | Upside/Downside from $312 |
|---|---|---|---|
| 6–12 months | $240 – $260 | Multiple compression | -17% to -23% |
| Ideal Buy Zone | $200 – $220 | Valuation normalization | Best entry point |
| 2026 | $280 – $300 | FCF growth + stable margins | Neutral |
| 2027–2028 | $340 – $380 | Long aerospace cycle expansion | +9% to +22% |
6. Key Risks
| Risk | Level | Comment |
|---|---|---|
| Excessive Valuation | High | Core risk at current price |
| Aerospace Cycle Risk | Medium | Classic cyclical exposure |
| Execution Risk | Medium | GE must now deliver every quarter |
| Interest Rate / Macro | Moderate | Sensitivity to macro + risk-free rate |
| Defense / Geopolitics | Low | Could be long-term tailwind |
7. Final Verdict & Recommendation
| Factor | Assessment |
|---|---|
| Revenue Growth | Strong |
| Margins | Dramatic improvement |
| Free Cash Flow | Reestablished strength |
| Dividend | Attractive and rising |
| Current Valuation | Too expensive |
| Long-Term Quality | Excellent |
🎯 Final Call: HOLD – Buy only on major correction
GE Aerospace is:
✅ A great company
❌ But not a great entry point today
📉 Ideal Buy Zone: $200 – $220
📈 At $312, the market leaves no room for error
Disclaimer :
This content is for informational purposes only and does not constitute investment advice. All investments carry risk, including the loss of capital. Conduct your own research before making any decision.
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